The continued strength of the dairy markets should “focus the mind” of processors setting milk prices over the coming days – with price increases needed “as quickly as the Covid-19 cuts”, according to the Irish Creamery Milk Suppliers’ Association (ICMSA).
Speaking following the latest auction in the Global Dairy Trade (GDT), Gerald Quain, ICMSA Dairy Committee chairperson, said that the increase of 8.3% is very significant and vindicates ICMSA’s view that there is significant positive momentum in the dairy market at present.
“It also shows that price increases must not only be on the agenda for milk processor board meetings but must be delivered – and indeed as quickly as the Covid-19 cuts of previous months,” he added.
This increase in the GDT is not an isolated market indicator but rather a further indication of the trend that started back in May.
“The current market is continuing to show strength and this continued strength should focus the mind of those setting prices in the coming week that 30c/L is the absolute minimum that will be acceptable to dairy farmers for their June milk.”
Milk processors cannot continue to use the Covid-19 pandemic as a reason to hold back milk price, the chairman added.
“A milk price increase is justified – and must be delivered,” Quain concluded.